ADVISER MATTERS
Client Case study Giving up a DB pension is one of the biggest financial decisions your clients could ever make . The FCA and The Pensions Regulator believe that it will be in most people ’ s best interests to keep their defined benefit pension . From our experience , there are some cases where we believe it is the best interest of clients to transfer .
This is a client we have recently been able to assist , introduced from a firm who decided to relinquish their DB permissions . A client was referred to Origen who was aged 60 , married , no children , recently retired , and was drawing down off his DC pension which has a significant value . His wife is in receipt of State Pension and DB pension benefits , so they have an element of guaranteed income that meets their fixed outgoings fully . The client will also be eligible for a full State Pension at age 67 . The DB scheme NRA is age 65 , and when client receives State Pension age in less than seven years the guaranteed household income will be sufficient to pay expected regular retirement outgoings , reducing the need to draw on his DC pension . The client also has some savings which they will use as an emergency fund , as well as investments , which they will for one off larger pieces of expenditure if needed . The client ’ s objectives were to in order to purchase a second home , so that he and his wife can enjoy retirement , share it with friends and their wider family and have the flexibility to enjoy more holiday time as they enter the later stages of their life . The home would be financed from tax free cash , as well as a small amount from investments . They would like wider family to be able to inherit any remaining assets after their death .
Following further discussions this with the client to fully assess this case , including understanding both the client ’ s holistic financial circumstances and objectives , our Origen adviser felt the most appropriate action was to facilitate a transfer to enable the purchase of a second home … Once we had delivered our advice and implemented our recommendations , the client was passed back to their adviser who continues to provide advice and services to the client on an ongoing basis .
How Origen can help Origen is one of the UK ’ s leading DB advice firms . Our service quality and governance meets all regulatory requirements , is subject to regular external audit , and allows advice firms to confidently continue to service their clients ’ ongoing advice needs and provide a holistic service . Origen is also owned by Aegon UK plc , providing reassurance and financial support for the long term . Please call Origen on : 0344 209 3144 * Email : dbreferral @ origenfs . co . uk Website : www . origenfs . co . uk
You can find out more about our Pension Transfer Bureau partners on the SimplyBiz and Compliance First websites , in the ‘ Your Proposition ’ area .
YOUR RELATIONSHIP WITH YOUR CLIENT IS ONE OF TRUST , AND YOU NEED TO ENSURE THAT NOTHING IS DONE TO DAMAGE THIS BOND , OR THE CLIENT ’ S FINANCIAL SITUATION .
18 | the adviser